Biodegradable Plastic Market Sales to Top USD 25.1 Billion in Revenues by 2033 at a CAGR of 16.2%

Introduction

The biodegradable plastic market is on a rapid growth trajectory, driven by increasing environmental concerns and stringent regulations aimed at reducing plastic waste. The market size, valued at approximately USD 5.8 billion in 2023, is projected to reach around USD 25.1 billion by 2033, growing at a robust CAGR of 16.2% during the forecast period. This growth is fueled by heightened consumer awareness about sustainability and government policies promoting the use of eco-friendly materials.

Biodegradable plastics, made from renewable sources such as corn starch or sugarcane, are gaining traction as alternatives to traditional plastics due to their ability to break down naturally and reduce landfill waste. Recent developments include advancements in material technology and increased production capacities to meet rising demand.
However, the market faces challenges such as higher production costs compared to conventional plastics and limited infrastructure for waste management and composting. Despite these hurdles, innovations and supportive regulations are expected to drive continued expansion in the biodegradable plastic sector, positioning it as a significant player in the effort to combat environmental pollution.

Mitsubishi Chemical Corporation recently announced the expansion of its biodegradable plastic product line, focusing on advanced materials for packaging and agricultural applications. The company is investing approximately USD 50 million to increase its production capacity, aiming to meet the growing global demand for sustainable plastics.

Biome Technologies plc has made strides with its new product launch, introducing a novel range of compostable films and bags designed for various industrial applications. This launch is part of Biome’s strategic plan to boost its market presence and address the rising demand for eco-friendly packaging solutions.

Plantic Technologies Limited, known for its innovative biodegradable materials, was acquired by Nestlé in a deal worth around USD 30 million. This acquisition is expected to enhance Nestlé’s sustainable packaging initiatives and expand Plantic’s reach in the global market.

Key Takeaways

The biodegradable plastic market is set to grow significantly, with an expected annual compound growth rate (CAGR) of 16.2%. The market, valued at USD 5.8 billion in 2022, is projected to reach approximately USD 25 billion by 2032.
Product Analysis: Starch blends dominate the market, holding a 40% share.
Application Analysis: The packaging sector leads with a 58% market share, driven by increasing consumer preference for eco-friendly packaging solutions.
Regional Insights: Europe leads the global market with a 44% share, influenced by strong consumer awareness and stringent government regulations against non-biodegradable plastics.

Statistics

As of 2015, according to global analysis of all mass-produced plastics ever manufactured, it was estimated that only 9% of plastics had been recycled, and 12% was incinerated, with the rest being accumulated in landfills or the natural environment.
However, compared with marine environments, the research on soil MPs is still in its infancy. As of 2020, the research on water MPs accounts for 47.02%, while that on soil MPs accounts for only 7.01%
In 2021, the global bioplastic production capacity was about 2.42 million tons, and BP production accounted for 76.7% of this capacity
According to statistics from the Ministry of Natural Resources and Environment, out of over 30 billion plastic bags disposed of, only 17% are recycled.
Vietnam’s total demand for biodegradable plastics is estimated to reach approximately 80,000 tons annually by 2025. Consequently, the potential for development in the biodegradable plastics sector is significantly promising.
A study by the United Nations Environment Programme (UNEP) estimated that “the overall natural capital cost of plastic use in the consumer goods sector each year is $75 billion” (UNEP, 2018). This cost includes the negative impact of plastic on ecosystems, fisheries, and tourism.
Although Beyond Plastics is a staunch advocate of composting the food scraps and yard waste that makes up more than 50% of the municipal waste stream, there are some reasons that bioplastics and other compostable plastics are not the great solution they might seem like at first glance.
For example, the natural bottle used by major beverage companies is currently 30% bio-based plastic and 70% fossil-based plastic.
Most samples contain more than 1,000 chemical features; the maximum they found was 20,000 features.
Nitrogen facilitated PBSA decomposition and reduced the priming effect during the first 6 weeks of the experiment. During the 80 days of plastic decomposition, 30% and 49% of the released CO2 were PBSA-derived, while the amount of SOM-derived CO2 exceeded the corresponding controls by 100.2 and 132.3% in PBSA-amended soil without and with N fertilization
The 50 μm thick, double-layered PBSA film contains 55% C and consists of 35% bio-based carbon. Before being applied to soil, the PBSA was sterilized with 70% ethanol and cut into small pieces
Bioplastics are made from highly processed plant-based ingredients, such as corn, potatoes, sugar beets, sugar cane, agave, or wheat, with some bioplastics containing just 25% plant-based ingredients and as much as 75% fossil fuel ingredients.
The bioplastics market was valued at more than $7.6 billion in 2021; that value is expected to rise to more than $15.5 billion by 2028. At the same time, the market for conventional fossil fuel-based plastics is expected to surge in value from $609 billion in 2022 to more than $770 billion by 2028.
minimum of 5.25 trillion plastic particles weighing close to 269,000 tonnes was conservatively estimated in 2013 float on the surface of world’s oceans using an oceanographic model of floating debris dispersal.
In 2018, bioplastics comprised close to one percent (2.112 million tonnes) of the about 335 million tonnes of global plastics production.
China and India currently account for about 37 % of the world’s population, with China home to about 1.4 billion people and India to 1.3 billion.
Alone, the consumption of thin (4–8 μm) polyethylene sheets by Chinese farmers increased from 6,000 tonnes, covering 0.12 million ha, in 1982, to 1.2 million tonnes, covering almost 20 million ha, in 2011.
This could include plastic bottles, coffee cup lids, and food packaging. With such a throwaway culture, only 5% of plastic is recovered from what is produced.
The amount of plastic packaging that is thrown away every single year is enough in length to circle the globe four times over. This statistic will only grow as the rate of plastic waste is growing at a rate of 9% every year.
Since the beginning of plastic production, it is estimated that at least 8.3 billion tonnes of plastic have been produced. From this, at least 6.3 billion tonnes of plastic waste has been created and almost 80% has been put into landfills or is in the natural environment.
With current production rates and continued mismanagement of plastic waste across the world, there will be 12 billion tonnes of wasted plastic in a landfill by 2050. With a single plastic bottle takes 450 years to biodegrade.
7 million other people in the UK. In just a single day, 7 million coffee cups are thrown away every single day. Many of these coffee cups are made from polystyrene complete with plastic lids.
Plastic bottles are also a problem, as 20,000 plastic bottles are being bought worldwide every single second. Unfortunately, less than 50% of these bottles are recycled. Just 7% of the plastic bottles are transformed into new bottles with a single plastic bottle taking 450 years to biodegrade.
Due to the tiny fragments of plastic in the ocean, all sea turtle species and 44% of seabird species have been found to have plastic in their system or around their bodies. This also includes a depressing 22% of cetaceans.
This means that 500 billion plastic bags are used across the globe each year. By remembering a cotton bag or using shops that supply paper bags we could significantly lessen the damage of plastic to the environment.
If historic growth trends continue, global production of primary plastic is forecasted to reach 1,100 million tonnes by 2050.
The estimated annual loss in the value of plastic packaging waste during sorting and processing alone is US$ 80- 120 billion.
despite current efforts, it is estimated that 75 to 199 million tonnes of plastic is currently found in our oceans.
plastic waste entering aquatic ecosystems could nearly triple from 9-14 million tonnes per year in 2016 to a projected 23-37 million tonnes per year by 2040.
The history of synthetic plastics dates back to 1907 with the production of Bakelite. Since then, especially from the 1950s onwards, plastic production has surged dramatically. In 1950, global plastic production was just two million tonnes; by 2019, this number had leaped to 460 million tonnes.
Upon disposal, only a fraction of plastic waste is recycled (9%), with half going to landfills and another significant portion being mismanaged.
Global statistics paint a grim picture of plastic pollution. Approximately 0.5% of the world’s plastic waste ends up in the ocean, amounting to 1-2 million tonnes annually.
There are more types on the market than ever before, and global bio-plastic production is set to more than TRIPLE to 7.43 million by 2028.
Biobased plastics are generally identical to their conventional counterparts but made from crops and biological feedstocks rather than fossil fuels. Coca-Cola’s PlantBottle, for example, is made from around 30% plant-based PET (polyethylene terephthalate).
This is even though scientists calculated a decade ago that biodegradable plastics could substitute for as much as 31% of plastic.
Overall, biodegradables are overwhelmingly used for bags (68%) with packaging close behind (21%).
Recent reports reveal that the US alone had discarded more than 18 million disposable masks, 22 million gowns, and 500,000 gloves.
The Great Pacific Garbage Patch is the largest, covering an area of more than 1.6 million square kilometers.

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Emerging Trends

Enhanced Material Technologies: Advances in biodegradable plastic materials are leading to the development of new, more efficient options. For example, innovations in polylactic acid (PLA) and polyhydroxyalkanoates (PHA) are improving the performance and applications of biodegradable plastics, making them more versatile for various uses.
Increased Focus on Packaging Solutions: There is a growing emphasis on creating eco-friendly packaging materials. Companies are developing biodegradable films, wraps, and containers to replace traditional plastic packaging. This shift is driven by consumer demand for sustainable products and government regulations aimed at reducing plastic waste.
Expansion into New Applications: Biodegradable plastics are finding new applications beyond packaging. The medical and agricultural sectors are exploring biodegradable materials for products such as sutures, drug delivery systems, and agricultural films. This diversification is expanding the market’s reach and potential.
Government and Corporate Initiatives: Governments and corporations are increasingly investing in biodegradable plastic technologies and supporting regulations that promote their use. For example, several countries are implementing bans on single-use plastics and encouraging the adoption of biodegradable alternatives.
Innovative Recycling Processes: New recycling technologies are being developed to handle biodegradable plastics more efficiently. These processes aim to improve the breakdown and recycling of these materials, addressing some of the current challenges related to waste management.
Consumer Awareness and Education: There is a rising awareness among consumers about the environmental impact of plastics, leading to increased demand for biodegradable options. Educational campaigns and sustainability initiatives are playing a key role in driving this trend.

Use Case

Packaging Solutions: Biodegradable plastics are extensively used in packaging materials. For instance, they are employed in creating compostable bags, wraps, and containers. The global packaging sector accounted for approximately 58% of the biodegradable plastics market in 2022. Companies like NatureWorks LLC are leading the way with innovative packaging solutions that decompose more efficiently than traditional plastics.
Agricultural Films: In agriculture, biodegradable plastics are used for mulch films that cover soil to enhance crop growth. These films decompose after use, eliminating the need for removal and disposal. This segment is expected to grow significantly, with agricultural applications projected to capture a notable share of the market by 2030.
Medical Products: The medical industry utilizes biodegradable plastics for various applications including sutures, drug delivery systems, and implants. Biodegradable plastics in medical devices are valued for their ability to break down safely within the body, reducing the need for surgical removal. This sector is experiencing increased adoption, driven by advances in material technology.
Consumer Goods: Biodegradable plastics are increasingly used in consumer goods such as cutlery, plates, and other disposable items. With a growing consumer preference for sustainable products, this segment is expected to expand rapidly. In 2022, biodegradable plastics for consumer goods held a significant share of the market, reflecting increasing consumer demand for eco-friendly alternatives.
Construction Materials: Biodegradable plastics are being explored for use in construction materials like insulation and protective coverings. These materials offer the benefit of reducing environmental impact while maintaining functionality.

Key Players Analysis

Mitsubishi Chemical Corporation is actively advancing in the biodegradable plastic sector through significant investments and product innovations. The company focuses on developing and expanding its range of biodegradable materials, including starch-based plastics and polyhydroxyalkanoates (PHA). Mitsubishi Chemical has committed around USD 50 million to enhance its production capabilities and meet the rising demand for sustainable plastics.

Biome Technologies plc is making notable strides in the biodegradable plastic sector with its focus on innovative compostable materials. The company has introduced new biodegradable films and bags designed to reduce environmental impact. Biome’s recent product launches aim to cater to the growing demand for sustainable packaging solutions. Their efforts include developing advanced materials to enhance performance and reduce costs.

Plantic Technologies Limited is a significant player in the biodegradable plastic sector, specializing in innovative, sustainable packaging solutions. The company’s proprietary technology produces high-performance biodegradable plastics made from renewable resources such as corn starch. Plantic’s materials are widely used in food packaging and other applications where reducing environmental impact is crucial.

Eastman Chemical Company is actively advancing in the biodegradable plastic sector with its investment in sustainable material technologies. Eastman is developing a new range of biodegradable plastics derived from plant-based sources, enhancing the functionality and environmental benefits of their products. Their focus is on expanding production capacities and integrating these innovative materials into various applications, including packaging and consumer goods.

NatureWorks LLC is a leading player in the biodegradable plastics sector, specializing in the production of Ingeo™ biopolymer. This material is derived from renewable plant sources and is used in a wide range of applications including packaging, textiles, and consumer goods. NatureWorks is recognized for its innovative approach, with significant investments in expanding its production capabilities to meet growing global demand.

Novamont SpA is a key contributor to the biodegradable plastics market, known for its Mater-Bi® bioplastics. These materials are made from renewable resources and are widely used in packaging, agricultural films, and disposable products. Novamont focuses on integrating its bioplastics into various applications to enhance environmental sustainability.

Yield10 Bioscience, Inc. is making significant strides in the biodegradable plastic sector through its innovative work on developing sustainable materials. The company focuses on producing high-performance biodegradable plastics derived from plant-based sources, aiming to address the environmental challenges associated with traditional plastics. Yield10’s research includes engineering crops to produce these bioplastics, enhancing sustainability and reducing reliance on fossil fuels.

Synbra Technology BV is a prominent player in the biodegradable plastic sector, known for its production of bioplastics using renewable resources. The company specializes in creating materials like polylactic acid (PLA) for use in packaging and other applications. Synbra’s focus on sustainability and innovation has established it as a leading provider of eco-friendly plastic solutions. Their products are designed to decompose efficiently, aligning with global efforts to reduce plastic waste.

Danimer Scientific is a leading player in the biodegradable plastic sector, specializing in the development of innovative materials like PHA (polyhydroxyalkanoate). Their flagship product, Nodax® PHA, is designed to decompose naturally, reducing environmental impact. Danimer Scientific focuses on enhancing the performance and scalability of biodegradable plastics to meet growing demand in packaging and consumer goods. The company has made significant strides in expanding its production capabilities and partnerships to drive sustainability in the industry.

BASF SE is a prominent company in the biodegradable plastic sector, known for its product line, Ecovio®, a compostable plastic made from renewable resources. BASF’s focus is on integrating biodegradable plastics into various applications, including packaging and agricultural films, to offer sustainable solutions that meet stringent environmental standards. The company invests heavily in research and development to improve the efficiency and applications of its biodegradable materials.

PTT MCC Biochem Co., Ltd. is a significant player in the biodegradable plastic sector, specializing in the production of biodegradable polymers. The company focuses on developing high-performance polybutylene succinate (PBS) materials, which are used in a variety of applications including packaging and agricultural films. PTT MCC Biochem’s advancements in PBS technology are aimed at reducing environmental impact and meeting the rising demand for sustainable materials.

Total Corbion PLA is a leading entity in the biodegradable plastics market, known for its production of polylactic acid (PLA) bioplastics. The company focuses on creating high-quality PLA materials for applications such as packaging, textiles, and consumer goods. Total Corbion PLA’s innovations in PLA technology support the growing demand for eco-friendly alternatives to conventional plastics.

Conclusion

The biodegradable plastic market is rapidly expanding as consumers and businesses increasingly prioritize sustainability. With the market projected to grow from USD 5.8 billion in 2022 to approximately USD 25 billion by 2032, driven by a CAGR of 16.2%, the adoption of biodegradable plastics is set to rise significantly. Key growth drivers include heightened environmental awareness, stringent regulations against single-use plastics, and advancements in material technologies.
Despite challenges such as higher production costs, the ongoing development of innovative biodegradable materials and supportive government policies are expected to propel the market forward, positioning it as a crucial component of the global effort to reduce plastic waste.

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